J.T. Johnson and Sons Pty Ltd Old Adelaide Road, Kapunda, South Australia 5373 Ph: Fax:

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1 J.T. Johnson and Sons Pty Ltd Old Adelaide Road, Kapunda, South Australia 5373 Ph: Fax: sales@jtj.com.au

2 Company History L-R Mark Johnson, Chris Johnson, Jack Johnson, Robbie Johnson and Denis Johnson. Photograph courtesy of Barossa Living Magazine The JT Johnson & Sons story began in 1923 when company founder John Theodore Johnson established a small chaff mill plant in Stockport, South Australia. In 1957 he re-located the plant to nearby Kapunda in the heart of one of the finest hay growing areas in Australia. With the aid of sons Max and Clyde, the business grew rapidly over the next twenty years and in 1976 the company built and commissioned it¹s first Pellet Production Mill. The success of this operation led to the company making a major investment in 1985 by establishing a new and unique High Fibre Pellet Mill which was regarded to be one of the best in the world. In 2001 the company again invested in technology upgrades to the Pellet Mill. Completed in late 2002, the upgrade has allowed JT Johnson & Sons to formulate specific rations to suit customer demands. In 1987 the company diversified slightly as it entered the Export Hay markets in Japan, South East Asia and the Middle East. Strict quality control guide lines and the ability to move with demands from the Market has seen continued growth over the past 20 years. In 1995 JT Johnson & Sons entered in to a joint venture agreement with Japanese company Asahi Industries to form Johnson Asahi. The company has a hay processing plant in Horsham, Victoria that produces oaten hay, alfalfa hay and straw. (see map on next page) In 2005 JT Johnson & Sons purchased a new hay production plant from Canadian company Hunterwood Technologies. This plant produces 1/2 cut bales, 40kg bales, 450kg Mag bales and a Bedding Straw bale designed specifically for Johnsons. In 2007, following the success of the new production plant in South Australia, Johnson Asahi also purchased a Hunterwood style machine for its site in Horsham. With the latest hay production technology in both South Australia and Victoria, production capacity in now around 140,000 metric tonnes of hay and straw per year for the Asian and Middle Eastern fodder markets. The company is currently under third generation management with fourth generation middle management and remains 100% family owned and run.

3 Darwin A U S T R A L I A Alice Springs Brisbane Perth Adelaide Sydney Canberra Melbourne Hobart from Alice Springs from Perth Port Augusta Port Pirie S O U T H A U S T R A L I A To Adelaide Clare From Renmark & NSW border Horsham V I C T O R I A Port Wakefield KAPUNDA J.T. Johnson Greenock Gawler Waikerie from Sydney & Mildura MELBOURNE PORT ADELAIDE ADELAIDE Products are transported by road and rail from Horsham to Melbourne for shipment to destinations worldwide. from Melbourne KANGAROO ISLAND Products are transported by road from Kapunda to Port Adelaide for shipment to destinations worldwide.

4 Australian Oaten Hay Oaten Hay has been grown by Australian farmers for the Australian Dairy Cattle Market for many years. In the late 1980 s Australian Exporters saw an opportunity to promote the Oaten Hay as an alternative feed to the American and European fodder products being sold in to Asia and the Middle East. In 1987/88 just over 20,000mt of Oaten Hay was exported to Japan. JT Johnson and Sons started exporting to Japan in 1987 and since that time has worked closely with producers, importers and overseas farmers to help develop what now is a 700,000mt a year industry. Each year research and development is carried out on new varieties of oats in order to develop the best quality oaten hay possible. Since the varieties used in the late 1980 s, the latest varieties have thinner stems, are softer in texture and have better palatability which means a better fodder product for the end user. Johnson s quality control system has been developed over many years and last year we became the first company in the world to X-Ray each bale before production to check for foreign material. Our staff work closely with growers and encourage them to use farming methods that result in the best possible end products. Such things as sowing rates, field management, fertilizer application rates, cutting stages, baling and storage methods are critical to the end product being the best quality possible. We encourage our growers to understand the end users requirements and what they are expecting to receive. This year we led a delegation of growers to Japan to meet dairy farmers and discuss the issues that face the Japanese dairy farmer. This face to face contact will be invaluable in the future and reinforces our commitment to the industry. Oaten Hay is one of the preferred feed products for many of our customers. One of these customers is the number 1 dairy company in Japan, MEIJI MILK CO. We think Australian Oaten hay is more natural, using less fertilizer and agrichemical than other hay from other countries. It also has high palatability for dairy cows. The reasonable price and value is a good balance. We have been buying oaten hay continuously from Johnson s since the beginning of our oaten hay business in Mr Yoshinori Suzuki MEIJI DAIRY AUSTRALAISA PTY LTD & MEIJI FEED JAPAN Co. We currently supply Oaten Hay to Dairy Farmers in Japan, Korea and Taiwan. The demand for Oaten Hay continues to grow each year due to its acceptability as a quality dairy feed.

5 1/2 Cut Bale Specifications (4 Blades) Average Weight: 25kg OATEN HAY Standard Container: 1,050 / 1,080 Bales HC Container: 1,050 / 1,080 Bales WHEATEN (CWS) / BARLEY STRAW (CBS) Standard Container: 1,050 / 1,080 Bales Standard container loading style 20 x Bale Pack HC Container loading style 30 x Bale Pack

6 Oaten Hay Average Weight: 40kg Packing Average weight is 40kg per bale 18 bales per pack Approx. 36 packs per 40ft container Approx. 650 bales per 40ft container 26mt per 40ft container 40kg bale 18 Bale Pack HC Container loading 650 bales

7 Horse Bale Specifications Average Weight: 30kg Packing Average weight is 30kg per bale 18 bales per pack Approx. 42 packs per 40ft container Approx. 770 bales per 40ft container 23mt per 40ft container This unique bale is specially designed to give a soft press while keeping length and minimal dust. Johnson s are world leaders of the horse bedding industry with innovative new technology.

8 Mag Bale Specifications Denotes unitised straps (12 or 16 slice) We can produce; 1 x 16 slice type bale 1 x 12 slice type bale 1 x 8 slice type bale 1 x 4 slice type bale Popular with TMR uses, larger dairies & beef farms. Can also be used by small farmers. 16 slice 1 slice = 31 kg 8 slice 1 slice = 62 kg 12 slice 1 slice = 41 kg 4 slice 1 slice = 125 kg

9 Unpacking Mag Bale

10 Mag Bale Specifications Standard Container Information Oaten Hay Average weight is 500kg per Mag bale Approx. 52 bales per 40ft container We load approx. 26mt per 40ft container 8 slice unitised 2 strap 12 or 16 slice have unitised straps (Right) Oaten Hay bales are loaded into containers 2 bales high, standing up and straps out. Bale on top left is an example of a wrapped bale. Straw Average weight is 450kg per Mag bale Approx. 58 bales per 40ft container We load approx. 26mt per 40ft container 12 or 16 slice have unitised straps (Right) Straw bales are loaded into containers 3 bales high, lying down and ends out. Bales on left are examples of single straps and on right are double straps.

11 Johnson s are the first hay exporters in the world to x-ray big bales before processing. Johnson s were also the first in the world to address the issue of product contamination. Now with the use of x-ray technology, foreign material is detected in the hay to eliminate the health concerns of product contamination. Contaminants

12 Images of X-ray

13 J.T. Johnson & Sons New Tracability Stock Management Software System FARM STORAGE CONTRACT Farmers Name & Address details Paddock Location - use of GPS Paddock History - regular inspections Crop History - Sowing rate, fertiliser chemical sprays etc Cutting & Baling - record of growth stage Analysis - core samples & ARGT Test Grading - analysis and specification test Storage records by Tag numbers Storage on Farm, on site and in depots Receival - all details traced by contract no. and ARGT tag number Accurate stock records Customer can select the stack that suits their customer requirements. This stack will be held for their shipments only. Stacks are identified by ARGT tag number Tag Numbers - allocate ARGT Tag numbers PRODUCTION Production instructions from Sales staff direct to the production floor Specific stack numbers allocated for each shipment will ensure that the customer will receive the exact stack they requested Each bale is moisture tested and x-rayed before production EXPORT ORDER Processed Standards inspection records Production schedule is controlled by sales staff. Production staff read direct from the system so chance of errors is reduced Complete tracability from the farm to the export container Each bale is tagged - each bale tag is scanned and recorded during production Stock control is controlled by tag numbers Quality Assurance records are recorded and are easily accessible Johnson s ARGT Tag

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